Bangladesh’s Trade Partners and the J-Curve: An Asymmetry Analysis
Separating currency appreciations from depreciations and using nonlinear models in recent literature have improved discovering significant link between the trade balance and the exchange rate. We add to this growing literature by considering the experience of Bangladesh with 11 trading partners. When a linear model was used, support for the J-curve effect was present only with one small partner. However, when a nonlinear model was used, support increased to three countries including the largest partner, the U.S. which accounts for more than 12% of Bangladesh’s trade. Furthermore, the nonlinear models supported short-run asymmetry adjustment as well as short-run asymmetry effects of exchange rate changes in most cases. However, long-run asymmetric effects were limited to a few.
|Date of creation:||06 Aug 2017|
|Date of revision:||07 Sep 2017|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:81208. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.